Cleaning and renovating any property is a long and arduous process. It can be hard to lower the costs while increasing your return on investment. Thankfully, it doesn’t have to consume all of your money or time. Here are six efficient tips that can help you improve your property while increasing its income potential.
Turn it Into a Fixer Upper
The average renovation costs less than $40,000 (£30,649). That doesn’t mean all renovations cost the same though. Some renovations cost more than others. Kitchens and bathrooms are generally easier to renovate because of items such as appliances and fixtures. It’s important for landlords to come up with a budget and stick to it.
You could end up over- or under-renovating your home. While you want it to look beautiful, you’ll have to be careful about the costs for repairs and renovations. A fixer-upper is an attractive option since it provides greater cash flow. It’s possible to make your rental attractive without going crazy on the costs.
Take on a DIY Project
Once you have a budget in mind, write down a list of possible home renovation projects. Choose which ones you’d like to do it yourself compared to ones you’ll need a contractor for. For example, basic repairs and upgrades are easy projects that most people can take on themselves. This involves painting the walls and replacing the flooring. These easy and low-cost fixes can go a long way in upgrading your property.
You should also focus on the exterior as well. Since most landlords worry about interior projects, exterior upgrades can increase the value of your property. High-quality windows and doors are a great investment since both lead to greater returns on investment. If the property requires a larger project, such as a bathroom or kitchen remodel, then you’ll need someone else to do it.
Hire Someone Else to Do It
Even if you’ve become your own handy person, you’re going to need some help. Since it’s not always easy to find the right professionals, it’s important to make these decisions early on. You should have an electrician and plumber on call to help you with most home projects. You don’t want to scramble around town for a plumber the moment you have a leak in your bathroom.
Attend local meetings where you can meet real estate investors. Even free seminars can help you find local realtors in the area. Many of these real estate agents and investors can help you find a team of professionals who can do the job. Networking is also a great way to get advice and tips on renovating your rental.
Repair Before Renovating
Most landlords clear out the house, lay down carpets and flooring, paint the interior, and rush their tenants to move in as quickly as possible. This can become a costly process that’s not necessary since the entire house doesn’t need to be redone. You should only focus on three components: carpets, ceilings, and walls.
You should replace your carpets every seven years. A professional cleaning service can make your carpets look new and clean, and will cost less than the cost of new carpets. It’s not necessary to paint the ceilings unless it was previously occupied by heavy smokers or dirty tenants. When it comes to your walls, Mr. Cleaner’s Magic Eraser removes dust, fingerprints, and scuffs quickly and easily instead of adding a fresh coat of paint.
Focus on the Kitchen & Bathrooms
The kitchen and bathrooms should become the focal point of your place. Tenants are turned off by a dirty and moldy kitchen or bathroom that’s also in need of updating. Neither of these rooms should look outdated. If you’re considering adding any upgrades, these are the two rooms you should focus on.
It’s advisable to renovate the kitchen and bathroom every 5 to 10 years. A newly renovated kitchen or bathroom can increase your return on investment by 80% compared to other renovations. Sometimes all you need is to replace the flooring, install new fixtures, and paint the walls and ceiling. By lowering your renovation costs, you can increase your rental income.
Do Some Minor Landscaping
As previously stated, the exterior is just as important as the interior. The exterior will be the first thing that prospective tenants will see. Make sure that your front landscaping is cleaned and looked after. If your rental has a front yard, make sure it’s well maintained and cared for.
You can do it yourself or you can hire a landscaping service. The front yard doesn’t have to look perfect. It should be clean and safe to walk through. If you care for your landscaping, your tenants will be impressed.
Renovating a rental requires lots of planning. Whether you want to flip your property or rent it out, implementing a strategy can help you achieve long-term financial gains.